Putin starts military action in Ukraine - condemned by US, Nato

Russian President Vladimir Putin said he ordered a special military operation to “protect” the Donbas region of eastern Ukraine, citing the need to “demilitarise” the country and accusing the US of crossing Russia’s “red line” by expanding Nato. 

Putin said Russia doesn’t plan to occupy Ukraine, while urging soldiers there to put down their arms. His actions were condemned by US President Joe Biden, who called it an “unprovoked and unjustified attack by Russian military forces” on the people of Ukraine, and by Nato secretary-general Jens Stoltenberg, who said it was a “serious threat to Euro-Atlantic security”.

It’s unclear at this early stage the size of the military operation and how far it might extend. The US and its allies have for weeks warned of the potential for a full-scale invasion of Ukraine, including the capital, Kyiv, estimating Putin had massed 150,000 troops on the border. 

Separatist leaders in eastern Ukraine had appealed to Putin for help fighting Ukrainian forces. Putin recognised two breakaway republics in the area on Monday. 

Biden says ‘world will hold Russia accountable’

Biden said in a statement that “Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering”, adding Russia alone would be responsible for “the death and destruction this attack will bring.”

Biden said he would speak with Group of Seven counterparts on Thursday and then address the American people to announce further punishments for Moscow. “The world will hold Russia accountable,” Biden said.

US equity futures and stocks slid on the back of the Putin’s escalation. S&P 500 and Nasdaq 100 contracts tumbled more than 1%, European futures shed over 2% and an Asia-Pacific equity gauge fell to the lowest level this month. 

Treasuries, the dollar and gold climbed, reflecting demand for havens. Brent oil surged to $100 a barrel for the first time since 2014 as Russia’s escalation sparked fears of a disruption to the region’s critical energy exports. Russia is a key supplier of energy to global customers, with Europe relying on the nation for about a quarter of its oil supplies and a third of its gas.

Ukraine President Volodymyr Zelenskiy said in an address to the nation that any Russian move to aid separatists in the eastern part of Ukraine could cause an escalation in tensions. 

Ukraine poses no threat to Russia but will defend itself if attacked, Zelenskiy said in his speech. He said Putin didn’t respond to a request to talk by phone on Wednesday. Earlier, Ukraine’s foreign minister said he would seek another emergency session of the UN Security Council. 

Separately, the EU’s top diplomat, Josep Borrell, also urged Russia to refrain from any escalatory actions, calling the request for Moscow’s help by Ukrainian separatists a “dangerous” step. 

Kremlin spokesperson Dmitry Peskov said that the leaders of the self-proclaimed separatist republics in eastern Ukraine wrote to Putin for help repelling Ukraine, Interfax and Tass reported. 

It wasn’t clear what specific aggression the leaders believed they needed assistance with. Ukrainian officials have repeatedly said they have no plans for a military offensive against the separatists. 

Asked about the request, White House press secretary Jen Psaki called it an example of the type of “false flag” operation that the US has said was likely to occur. 

After hours of debate, Ukraine’s parliament agreed to approve Zelenskiy’s decree to impose a national state of emergency over the rising tensions with Russia.

The decree takes effect beginning midnight February 24 for 30 days. The declaration gives authorities the power to issue decrees on issues including the movement of people inside specific regions, curfews, restrictions on mass gatherings and evacuations. Local authorities will decide which restrictions to implement.

Lawmakers, in a separate vote, also agreed to increase defence spending by 26.5-billion hryvnia ($886m). 

Biden announced that the US is sanctioning Nord Stream 2 AG, the company behind a key gas pipeline from Russia to Germany, as well as the company’s leadership. The decision came after Germany announced it would halt certification of the pipeline. 

“Through his actions, President Putin has provided the world with an overwhelming incentive to move away from Russian gas and to other forms of energy,” Biden said in a statement. 

While the US has long opposed the Nord Stream 2 pipeline, sanctions targeting the project only appeared late in the Trump administration, after the conduit was largely complete. The US for years argued that completion would make Europe more dependent on Russia energy, undermining the continent’s security objectives. 

The EU sanctions made final on Wednesday target 23 people including banking executives, military chiefs, media figures and a top Kremlin official over Russia’s actions in Ukraine.

The bloc included on its list state television presenter Vladimir Soloviev, foreign ministry spokesperson Maria Zakharova and the head of Kremlin-backed media outlet RT, Margarita Simonyan, according to officials familiar with the names. The sanctions against prominent Russian media figures come after the EU accused Moscow-linked outlets of spreading disinformation about Ukraine.

Kremlin chief of staff Anton Vaino and defence minister Sergei Shoigu were also penalised, the officials said, but those steps are more symbolic since they usually travel abroad only on state business using diplomatic passports.

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